Under a System of Flexible (Floating)exchange Rates,a Higher Canadian Trade

Multiple Choice

Under a system of flexible (floating) exchange rates,a higher Canadian trade deficit with Mexico will tend to cause:

A) the Canadian government to ration pesos to Canadian importers
B) a flow of gold from Canada to Mexico
C) an increase in the price of Canadian dollars, in terms of Mexican pesos
D) a decrease in the price of Canadian dollars, in terms of Mexican pesos
E) a flow of gold from Mexico to Canada